Akzo Nobel expands German paint distribution network

August 19, 2004

Press Release Akzo Nobel has signed an agreement to take a major share in one of the leading German decorative paint distributors, Peters. The deal has been arranged on an exchange basis, whereby Akzo Nobel will obtain a 30 percent stakeholding, and Peters will take over distributors Beissel and Kerstin, which were previously acquired by Akzo Nobel.

“In the context of the European decorative coatings market, Germany is of paramount importance to us and we are stepping up our efforts to improve our position in this strategic market,” said Rudy van der Meer, Member of Akzo Nobel’s Board of Management responsible for Coatings. “During the last few years we have been very active on the distribution side. We recently acquired Timpe & Mock in northern Germany and with this Peters deal we are bringing our total number of outlets in Germany to 72. We will not hesitate to continue on this path.”

“The key competence of Akzo Nobel Decorative Coatings is not only the formulation, production and marketing of paint, but also distribution as local availability and service are critical to our success,” added Leif Abildgaard, General Manager of Akzo Nobel’s Decorative Coatings Europe business unit. “By joining forces with, or acquiring distributors, we are creating greater critical mass and a solid platform for profitable growth. It is our firm belief that any distributors we acquire should be treated as customers. In other words, on an equal basis with the independent distributors we work with.”

Closing is subject to receipt of appropriate regulatory approval. Employee unions and representative bodies have been informed and consultation procedures will continue where applicable.